The Cabinet Committee on Economic Affairs has approved the construction of the Rajaswa Bhawan at Kasturba Gandhi Marg, New Delhi at an estimated cost of Rs.485.16 crore to be incurred over a period of next three and a half years (42 months) and Rs.15 crore as annual recurring expenditure after completion of the project.

The construction of the Rajaswa Bhawan, the National Tax Headquarters, in a plot of land measuring 5.65 acre has been undertaken with the objective of decongesting North Block and consolidating the establishment of both the Boards, that is the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC) under one roof. These Boards, besides advising the Government on tax policies, are responsible for the overall administration of field offices under them. Both the Boards are the largest revenue collectors for the Government of India. The growth in revenue collection over the years has led to expansion of the Directorates as well as staff under the Boards, and North Block does not have the capacity to accommodate all these offices. Therefore, a composite building bringing together both the Boards and associated offices will improve efficiency immensely, as appropriate physical infrastructure and work environment are important contributors to overall efficiency in tax administration.

The Defence Research and Development Organization (DRDO) was appointed as the agency for construction of the building in 2008 after obtaining approval of the Ministry of Defence and a No Objection Certificate (NOC) of the Ministry of Urban Development.

A nation-wide architectural design competition, was conducted in 2010-2011 and out of 58 final entries, the first prize award winner M/s Vistaar Architects and Planners, Mumbai was selected by a Board of Assessors and appointed as the main architect for the project for providing comprehensive architectural services.

The building design has been visualized as a modern, State-of-the-Art centrally located green building incorporating features of energy efficiency approaches in conformity with the Energy Conservation Building Code [ECBC] recommendation; Green Building concept leading to favorable Green Rating for Integrated Habitat Assessment [GRIHA]; fire protection and detection in conformity with all regulations; provision for seismic safety in conformity with all applicable Bureau of Indian Standards [BIS] codes; comprehensive waste management system; sewage treatment and recycling of water including independent system for grey and white water; minimal hard landscape and maximum soft landscape.

Government approval for construction of national tax headquarters consolidates tax boards under one roof, promoting infrastructure efficiency Approval was granted for construction of the Rajaswa Bhawan National Tax Headquarters on a 5.65-acre site to consolidate the Central Board of Direct Taxes and the Central Board of Excise and Customs into a single composite building, with an estimated capital cost, a 42-month construction period, DRDO appointed as construction agency, and a principal architect selected via a nationwide design competition. The design requires compliance with energy conservation and green building standards, fire protection, seismic safety per BIS codes, comprehensive waste management, and on-site sewage treatment with water recycling.